MODULE – 11
FOOD & BEVERAGE
BEVERAGES
COSTING
Beverages Costing
BASE OF COSTING
❖Costing of Food & Beverages are based on the Unit ofSales. i.e. cost per portion or measure of a unit. Then the unitcost is used to calculate to work out the selling price accordingto the profit margin required by the organization.
❖ Beverages are purchased either by the Bulk or Bottles orCases or in cartons. Then the costing is done in two waysi.e. one is for bottles and the other one is for cartons.
❖ When costing first to establish the Unit Price of Weight orthe Measure. Then on the base of the Gross Profit Margin ,Selling Price has to be calculated.
❖Cost is calculated by simply adding up the Cost of the Productused and dividing it by the Cost of the Product Sold. Forexample, if a Bar depleted $5,000 of Liquor in January andhad Liquor Sales in January of $25,000 their Liquor pour costfor January would be 20% ($5,000 ÷ $25,000
Base of costing
Gross Profit Margin
Beverage has a Cost of 20 to 25 Percent which results in a
“Gross Profit Margin” of 75 to 80 Percent. In addition to the
overall Cost of Food and Beverage, Restaurant & Hotel owners
calculate the Cost of each Dish.
Beverage costing
• Example:
Purchased price of a Bottle of Whiskey - Rs. 4500
Expected Gross Profit Margin - 65%
Cost Percentage - 35%
Calculation of Selling Price - 4500 x 100
35
= Rs 12857.00
Beverage costing
Various gross profit margins
• Draught Beer - 45%
• Bottled Beer - 50%
• Wines - 55%
• Spirits & Liqueurs - 65%
• Soft Drinks - 65%
❖Tea & Coffee - Costing is done according to the no: of sachets of Tea, Sugar & Milk or Cream used to prepare a Cup of Tea or Coffee.
❖Juices - Costing is done according to the no: of Fruits used to prepare a Glass of Juice.
This is where the Beverage Cost transferred to Food Cost
Costing of tea & coffee and juices
❖When costing a Mixed Drink or a Cocktail , it is compulsory to use a document called “STANDARD RECIPE’”.
❖In this document there are very important information's are indicated for the costing purposes.
These are as follows;Name of the Item Costed byTotal Volume Date CostedCost of Total Volume Date Re-costedUnit of Measure No of measuresCost of a Measure UnitUnit Price IngredientsQuantity Cost
Costing of mixed drinks or cocktails
A Standardized Recipe Format
specifically describes the Exact,
Measurable amount of Ingredients
and the method of preparation
needed to consistently produce a
High-quality Product. The exact
procedures, the type of
equipment, and the “Quantity &
Quality” of Ingredients are
listed.
Standard recipe format
Name of the Item -Costed By -Total Volume -Date Costed -Cost of Total Volume -Date Recosted -Unit of Measure -No of Measures -Cost of a Measure -
Ingredients Unit Unit Price Quantity Cost
Cost of Total Volume
=
1 2 3 4 5
Standard recipe format
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